- The Business Development Contributor at GMX has highlighted the successes shared on the GMX platform and its decision to work with Chainlink and Arbitrum.
- As of January GMX V2 has achieved several milestones including $360 million TVL, and billions in volume in the first couple of days.
GMX is celebrating a strong start to the year, and the platform’s Business Development Contributor Fredegar Christensen, has been highlighting all the success. The contributor begins by describing what has set the platform aside, ensuring its long-term success.
He explains that it was the first fully on-chain perpetual exchange to find a clear Product-Market Fit. Other defining characteristics that supported its success include; easy usability- participating traders can directly trade from their waller without needing an account or having to register, intuitive UI, and deep liquidity. Speaking on liquidity, the contributor notes that as of January, over 570 million USD in liquidity is available to traders on GMX.
The platform stands on three key figures according to the contributor, noting them as “its strong community, its focus on transparency, and robust security.” He further notes;
GMX did not launch with any seed funding or Venture Capital backing. It has been a community-driven protocol from the start, and is dedicated to security – with a public code repo, public metrics and bounties, and rolling audits
Why GMX was Built on Arbitrum
Speaking on why the platform was built and deployed on Arbitrum, the Ethereum Layer-2 solution offers an efficient code base and messaging layer that allows a computationally dense smart contract protocol for GMX to execute with low gas fees. Notably, Arbitrum was one of the first blockchains to promise minimal time-to-finality, low gas costs, and swift execution. Similarly, GMX rewards would accrue high costs if executed on Ethereum Mainnet.
The contributor further adds that Offchain Labs and the Arbitrum Foundation share an aligned long-term vision similar to GMX.
Launch of GMX V2 and Collaboration with Chainlink
The developer has further discussed the platform launch of the GMX V2 and collaboration with Chainlink. He noted;
The low-latency Chainlink Data Streams oracles provide faster execution and enable GMX to offer UI/UX optionality that wasn’t possible before. This is simply based on how on-chain price data worked with Chainlink Price Feeds, which were incredibly important for GMX V1 and the general design philosophy of the GMX protocol.
He further explains that Chainlink has a proven track record hence delivering value for critical DeFi infrastructure. Asked about the experience of working with Chainlink Labs & Offchain Labs, Fredegar Christensen, notes, “It’s been inspiring. The experience with pricing data and its nuances, the ability to work closely alongside GMX’s development, and the innovative approach to collaboration were crucial for getting GMX V2 to production. Chainlink’s support is second to none and a prime example of the ecosystem philosophy GMX has adopted. The experience with Offchain Labs has been similar, with close contact from the start and valuable and in-depth exchange on vital technical topics.”
In January, the platform continued to impress with records such as $360 million TVL in Liquidity in the GM Pools, $300 million in Open interest, $2 billion in weekly volume, and $12.33 million in total fees generated.
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